The commissioner may establish a veterans home in Silver Bay by renovating an existing facility owned by the city of Silver Bay if the city donates the building to the commissioner at no cost. Contracts made by the commissioner for the purposes of this subdivision are subject to chapter 16C. Buildings used for the veterans home must comply with requirements established by federal agencies as conditions for the receipt of federal funds for the nursing and boarding care of veterans. The city of Silver Bay shall secure the state match requirement from sources other than the state general fund. Money from other sources must equal at least 35 percent of the total cost of the renovation with the remainder of the funds to be provided by the United States Veterans Administration.
The home must provide beds for nursing or boarding and nursing care in conformance with licensing rules of the Department of Health. The home must be under the management of an administrator appointed by the commissioner in the unclassified service.